Learn the basics of the currency circle in seconds: Bitcoin
In 2008, a man who called himself Satoshi Nakamoto published an article online, expounding his new concept of electronic currency. Bitcoin was born and became popular worldwide. Bitcoin is a peer-to-peer, decentralized digital currency. So, what is the principle of Bitcoin? Let's explain it in easy-to-understand words.
Suppose there is a small village where people barter and exchange their own items for what they need.
One day, in order to encourage everyone to work actively, the village chief came up with a solution: whoever works hard will be rewarded with points, which can be exchanged for daily necessities, and at the end of the year, they can get more food. The village accountant is responsible for recording everyone's points. After the implementation of this system, everyone worked very actively, and the village chief was also very happy.
But after a while, Xiao Ming found that he worked very hard every day, but Xiao Qiang had more points than him. So Xiao Ming went to the village chief to report the situation.
After investigation, the village chief found that it was the accountant who colluded with Xiao Qiang and secretly added points to Xiao Qiang. The village chief decided to reform the points system: the accountant is no longer responsible for recording points. Everyone has a ledger. Everyone checks the points of the day together every day. Only the points recognized by everyone are valid, and the person who calculates the points first every day can get an extra point reward.
The village chief's new policy conforms to the basic principles of Bitcoin:
1. The accountant is no longer responsible for recording points. Everyone has a ledger, which is decentralization;
2. Everyone can use the points in the ledger to exchange for daily necessities or food, which is digital currency;
3. Everyone can supervise and trade with each other, which is peer-to-peer;
4. The first person to calculate the points can get a reward, which is mining;
5. If someone is afraid of offending others, the ledger submitted is anonymous, which is anonymity;
6. It is not replicable and limited.
Just as the daily necessities and food in the village are limited, the points are also limited.
The same is true for Bitcoin, which has an upper limit of 21 million. $BTC #比特币创始人
Learn the little knowledge of wealth in seconds: Treasury bonds
Treasury bonds are a kind of creditor-debtor relationship formed by the state relying on its own credit and following the usual principles of debt to raise funds from the society. It belongs to the category of bonds.
In layman's terms, it is like an "IOU" given by the state after borrowing money from the people. This "IOU" will determine the face value (that is, how much to borrow), the interest on the loan, and the repayment period in advance.
Because the issuance of treasury bonds is supported by the national credit, and the national credit is guaranteed by the country's reputation, taxation rights, and currency issuance rights, treasury bonds are regarded as one of the safest investment tools.
The risks of treasury bond investment mainly include the following aspects:
- Interest rate risk: changes in market interest rates will affect the price of treasury bonds. If interest rates rise, the price of treasury bonds may fall, resulting in losses for investors.
- Inflation risk: Inflation will lead to currency depreciation, thereby affecting the actual yield of treasury bonds. If the inflation rate is higher than the yield of treasury bonds, investors' actual returns will be lost.
- Liquidity risk: The liquidity of government bonds is relatively poor. If investors need to cash out in the short term, they may face certain difficulties.
- Credit risk: Although government bonds are generally considered to be safer investment tools, in some cases, such as when the country's credit rating declines or a debt crisis occurs, the credit risk of government bonds will also increase.
Of course, risk and return are usually proportional. Basically, the safest government bonds have relatively low interest rates. Among various interest rates, the government bond interest rate is at the bottom and also serves as a benchmark interest rate.
Therefore, government bonds are also an investment product that conservative investors particularly like.
So how do ordinary investors buy government bonds?
In fact, government bonds can be divided into three types: bearer, voucher, and book-entry.
Among them, bearer government bonds are more convenient to buy:
During the issuance period, you can go to the outlets of major banks and securities companies near your home that sell bearer government bonds to buy them.
At different stages of the market sentiment cycle, investors can adopt different risk control strategies:
- Emotional freezing point period: At this stage, market sentiment is very low, and investors should remain calm and avoid blindly following the trend. You can choose to wait with empty positions, or participate in some potential stocks with small positions.
- Bottom sideways oscillation period: At this time, market sentiment begins to gradually warm up, but there is still a certain degree of uncertainty. Investors can increase their positions appropriately, but they should pay attention to risk control and avoid chasing high and selling low. You can pay attention to some stocks with performance support and reasonable valuations.
- Irreversible upward trend stage: Market sentiment is relatively optimistic, and investors can actively participate, but be careful not to be too greedy. You can reasonably allocate funds according to your risk tolerance and avoid over-concentrated investment.
- High head oscillation period: Market sentiment begins to diverge, and investors should gradually reduce their positions and lock in profits. At the same time, pay attention to market changes and adjust investment strategies in a timely manner.
- Ebb tide main decline stage: Market sentiment is relatively pessimistic, and investors should stop losses in time to avoid further losses. You can choose to wait with empty positions, or pay attention to some stocks with strong defensiveness.
The market sentiment cycle can be roughly divided into:
- Startup period: After a period of decline, the market no longer has the situation of ceiling and floor, yesterday's limit up and today's limit down. The number of stocks that have exploded has decreased significantly, and long legs have begun to appear.
If a certain stock begins to break the space suppression and hits a recent high against the trend, and the trend of individual stocks in the sector is obviously stronger than the market, it has a strong sector effect, and the quality and capacity of the theme are quite imaginative. This is likely to be the beginning of a new round of theme speculation, and the leader is the leader.
- Fermentation period: It appears after the start-up period. With the further development of space, the sector's money-making effect appears, and the number of consecutive board stocks begins to increase.
This stage is the most critical stage for the leading players to show their skills and take positions.
In the early stage of the fermentation period, the focus is on the theme (attribute) direction. It is necessary to focus on the leader of the most mainstream hot spot in the market. If you can't make a one-word dragon, you can go to the same position of the turnover ticket at the first time in the start-up period, and then consider the second dragon;
In the middle and late stages of the fermentation period, you can consider making up for the first or second board tickets of the mainstream sector that started from a low position.
- Divergence period: The theme begins to differentiate in an elimination-style manner, with a certain loss effect, but strong stocks still continue to strengthen with some divergence and then consistency. The divergence in the front row is consistent or continues to be consistent, and the divergence in the back row may be eliminated.
- Climax period: The theme sector performs at a climax, showing a general rise, the leading stocks are accelerating with shrinking volume, and the miscellaneous stocks are also rushing up without thinking. The front row is too accelerated and consistent, and the back row follows the trend and makes up for the rise.
- Strong divergence period: High-priced stocks begin to cash out, large-volume stocks increase, and the loss effect is obvious. The leading stocks may continue to go up or go sideways with explosive volume divergence, but the sector obviously begins to fail to keep up, the sector effect is weak, and some sectors have been continuously large-volume.
- Recession period: The strong stocks in the market are basically in a sell-off trend, with an obvious loss effect, and it is easy to lose face if you make a move. Consistent sell-off.
- Freezing point period: After the continuous sell-off has reduced the bullish sentiment to the freezing point, the market will have a small repair, some oversold strong stocks will rebound, and new themes at low levels will try and make mistakes, but the overall decline is still relatively strong, and the bullish sentiment is poor.
- Chaotic period: There is no main line in the market. There is trial and error by funds in some directions, but the intensity of trial and error is weak and the willingness to go long is not obvious.Most of the bullish forces are on the sidelines, confused about the direction.
Market sentiment can be divided into two types: optimism and pessimism, which alternate in the market, triggering the so-called market sentiment cycle.
Optimism often accompanies a rise in the stock market, and investors are confident and willing to take more risks, which drives up stock prices. At this time, people are more willing to invest, and market transactions are active, driving the growth of the overall economy. However, excessive optimism may also lead to market bubbles and eventually a crash.
On the contrary, pessimism often occurs when the market falls, and investors panic and sell stocks to avoid risks.
This sentiment often leads to further declines in the market, forming a vicious cycle.
But at the same time, for rational investors, pessimism may also be a good time to find undervalued stocks.
When market sentiment is too extreme, it may cause investors to misjudge market trends, resulting in losses. In investment, rational and calm thinking is very important.
In the market, we need to have a basic understanding: as long as there is a money-making effect, there will be continuous inflow of funds; and when the money-making effect weakens, the attention of funds will decrease, and the short-term or medium-term yield will also decline. One or more reasons that attract capital market funds to enter the currency circle make the market's money-making effect continue to attract speculative hot money to follow up. This is an analysis from a macro perspective.
However, it is more important for us to be in this market to feel what the bull market is like. A bull market is a feeling that only those who have experienced it can truly understand. In a bull market, investor sentiment usually becomes optimistic, market transactions are active, and prices rise. However, a bull market may also be accompanied by risks, such as market overheating and bubble formation. Therefore, when participating in the market, investors need to remain calm and rational, and avoid blindly following the trend and over-investing.
In addition, for the altcoin market, due to its relatively small market value and liquidity, price fluctuations may be more intense and the risks are higher. When investing in altcoins, investors need to be more cautious, understand the fundamentals and technical aspects of the project, and evaluate its potential risks and benefits. At the same time, it is also necessary to pay attention to diversification of investments and avoid concentrating all funds on one altcoin.
In short, the market is complex and changeable, and investors need to constantly learn and adapt to obtain long-term and stable returns in the market. #新币挖矿
If you want to get high returns, you have to accept market corrections. These two are not contradictory. They are both very important in investment.
In addition, it is also crucial to find a reliable leader or mentor. Their experience and wisdom can help us see the right direction and reduce investment risks.
Looking to the future, the market seems to be changing.
The previous fluctuations may be just the beginning. Now all the major altcoins are ready to show their hand in the market value competition.
This altcoin craze, which is similar to that in 2021, means that new opportunities and challenges are coming.
However, there are also certain crises and risks that need to be paid attention to.
- Market volatility risk: The altcoin market is relatively unstable and the price fluctuations are large. Investors may face huge price fluctuations, resulting in investment losses.
- Investment risk: The investment value of altcoins is difficult to evaluate. Investors need to have an in-depth understanding and research of the market, otherwise they may make wrong investment decisions.
- Technical risk: There may be problems with the technical architecture and security of altcoins, such as vulnerabilities, hacker attacks, etc., which may lead to asset losses for investors.
- Legal risks: The legal status and regulation of altcoins are unclear, and investors may face legal risks and compliance issues.
- Liquidity risks: The market liquidity of altcoins may be insufficient, and investors may face difficulties in buying and selling, resulting in investment losses. #山寨币热点 #新币挖矿
#新币挖矿 #山寨币热点 For some altcoins, looking back on the sharp decline in the market in April, if you rashly exchange altcoins for BTC now, you will most likely suffer considerable losses.
The wiser approach is to wait patiently and wait for your altcoin to achieve a more significant increase, such as reaching 3 to 5 times or even higher levels, and then gradually consider converting part of the profits into BTC.
Of course, there is an important premise here, that is, what you hold must be the leader of the popular sector and carefully selected high-quality altcoins, rather than those unknown small coins.
In the process of venturing into the currency industry, patience and foresight are undoubtedly the key elements to success.
Blindly chasing short-term price increases and decreases will only make us unfortunate victims of market fluctuations. We must clearly understand that wealth in the currency circle never appears out of thin air. Every profit actually comes from the losses of other investors.
Therefore, frequent cuts and exits will only make us the "fuel" in the bull market, helping the main funds to rise.
Share the cryptocurrency investment experience I just learned
1. Hold mainstream cryptocurrencies for a long time
If you have spare money, buy more. If you don’t have spare money, don’t buy. If it goes up, don’t be too happy and sell it in excitement. Don’t be too sad if it goes down.
Mainstream currencies are held for a long time, not short-term choices of buying low and selling high.
2. If you have a stable job and sufficient cash, you can invest regularly. The lens can reduce risks and increase profit opportunities. But remember not to buy all positions, which can easily cause trouble.
3. In addition to holding a large number of mainstream coins, you can also choose some new coins, pick the right time, and leverage, but be careful to be within your tolerance.
4. Make money well off-site, broaden your ways to make money, earn more income, and exercise well. The body is the capital of the revolution. It’s useless to make more money without a body.
You can be a self-media, sell your own experience or your own talents, make products, and write articles.
5. Different industries are like different mountains, invest in the field you are most familiar with.
When you have nothing to do, read more relevant information. Have your own independent source of information, don't be greedy, have your own judgment, and be able to filter information.
This can reduce food, but also increase income, and avoid selling or buying value coins due to price fluctuations, information errors and confusion.
6. Learn technology
When you have nothing to do, read more. The cyclical trend of cryptocurrencies with excellent historical performance. Understand the history and information cycle of cryptocurrencies and other related information.
Study technical strategies and simulate their trends and trends to formulate your own trading strategies.
Only by constantly adjusting your own education strategy through practice can you improve your investment efficiency and increase the probability of profit. #新币挖矿
If you put all your eggs in one basket, your emotions will change with the ups and downs of this line.
Be happy when it rises, and be upset when it falls.
It's easy to get emotional when you see the rise, and don't know how to stop winning in time. When you see the rise, your mind becomes more and more excited, and it's easy to climax.
At this time, it's easy for you to miss the best time to sell, or even fall again and again, and regret it.
So the best situation is to spread it out, pick a few better ones on the market for long-term holding, and leave a part for risk operation and leverage. But you must remember that the leverage must be within your tolerance. The premise of making money is to keep your principal, and then the interest. #新币挖矿